Legal

What is CBD?

Cannabidiol (abbreviated CBD) is one of many compounds – called cannabinoids – found in the cannabis plant. Although it is not currently approved by the Federal Drug Administration (FDA), CBD is currently being studied and has become commonly regarded for its anti-anxiety and anti-inflammatory properties, in addition to its potential as a neuroprotectant to aid with conditions such as epilepsy, Alzheimer’s disease, and other neurological disorders.

While CBD can be found in all cannabis species’, it is most prevalent in strains of Cannabis Sativa L. with minimal THC (tetrahydrocannabidiol) content. Cannabis plants containing less than 0.3% THC are referred to as “industrial hemp,” and can be grown in the U.S. as part of a state pilot program or for University research.

Legality

KYLEX Botanicals operates under the auspice of the Kentucky Department of Agriculture (KDA) Industrial Hemp Pilot Program, authorized by the 2014 Farm Bill. Our cannabidiol (CBD) is derived from industrial hemp legally grown, processed, and extracted in the state of Kentucky.

Federal Law

Section 7606 of the 2014 Farm Billpermits states with hemp legislation to conduct pilot programs for the purpose of determining the crop’s economic viability. While cannabis remains federally illegal under the Controlled Substances Act, the Farm Bill allows for research and development of industrial hemp under the strict control of both state and federal government.

State Law

Senate Bill 50 was introduced and passed in an effort to put Kentucky at “the forefront of industrial hemp production and commercialization of hemp products,” and to, “create a regulatory framework for hemp production should the government lift its federal ban.” It passed in 2013, making Kentucky one of the first states with industrial hemp legislation.

When the Farm Bill passed in 2014, the Kentucky Department of Agriculture launched the Industrial Hemp Pilot Program and began operating under the guidelines of Section 7606. As the program expanded, the framework outlined in Senate Bill 50 became obsolete in relation to the federal legislation and new legislation was crafted.

Senate Bill 218 was enacted in March 2017 to improve and expand the legal framework originally outlined in Senate Bill 50. It aligned state regulations with the Farm Bill, and gave the Kentucky Department of Agriculture the ability to modify the pilot program based on decisions made in Congress, rather than having to wait for the general assembly to change it by statute.

By law, industrial hemp refers to "the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3 percent on a dry weight basis” — meaning hemp products, and the crops from which they are derived, cannot contain more than 0.3% THC, and will not get you “high.” This is strictly enforced by federal and state law, which requires all crops to be tested in-field by the department of agriculture prior to harvest. Hemp that does not meet the > 0.3% THC requirement is not permitted to leave the farm, and must be destroyed.

PROTECTION

Hemp-derived CBD extracts and finished CBD products are legal in all 50 states, according to Congress. The Farm Bill authorizes pilot programs to “study the growth, cultivation andmarketing” of domestically grown hemp crops. This allows licensed participants to process the crop and bring finished products to market. To clarify this interpretation, several pieces of legislation have been passed on both a state and federal level which provide additional protection to licensed growers, processors, and those purchasing CBD hemp products.

State Protection

Shortly after the Kentucky General Assembly passed Senate Bill 218, further clarification regarding hemp-derived CBD products was included in House Bill 333. The bill was introduced as an effort to address the state’s growing opioid abuse problem, however, it includes six subsections which outline six circumstances in which a person possessing hemp materials or products can do so without violating the law’s general prohibition against cannabis. According to Kentucky Agriculture Commissioner, Ryan Quarles, this language was meant to “remove any remaining doubt that cannabidiol (CBD) products derived from industrial hemp are legal, and not “marijuana” under state law.”

Federal Protection

Following the unlawful seizure of hemp seeds for the Kentucky Hemp pilot projects in 2014, an amendment was added to H.R. 4660 - The FY 2015 Commerce, Justice, Science Appropriations Act to “prohibit the Department of Justice (DOJ) or the Department Enforcement Agency (DEA) from using funds to interfere with Section 7606 ”Legitimacy of Industrial Hemp Research” of the Agricultural Act of 2014 (Farm Bill) sanctioned pilot programs. The following year, Sen. Mitch McConnell (R-KY) inserted language in Section 763 of the Consolidated Appropriations Act 2016 (Omnibus Spending Bill) which prohibits any government funding from interfering with hemp crops being transported within the state, or across state lines, through pilot programs conducted in conjunction with the Farm Bill.

Compliance

KYLEX Botanicals is a licensed grower and processor participant of the Kentucky Hemp Pilot Program, under which we have the legal
permission to produce our high-quality, hemp-derivedCBD oil, crystalline isolate, distillate, and other cannabinoid and terpene-derived
byproducts fromKentucky grown hemp crops. Our company strictly adheres to all rules and regulations of the Hemp Pilot Program and the 2014 Farm Bill. KYLEX customers can be assured all CBD products are legally produced, and are legal to purchase.

Policy Guide

If you are interested in learning more about the Kentucky Hemp Pilot Program and its requirements, the KDA has crafted an extremely thorough and detailed policy guide for participants that is available online for anyone to review. Click to read the 2017 Policy Guide.

As a company, Kylex Botanicals is proud to contribute to the research and development of the domestic hemp industry by performing ground-breaking cannabinoid studies, establishing standardized agronomic practices, partnering with medical professionals and universities on clinical trials, creating innovative technology to assist in expanding our developing product line, and introducing Kentucky hemp into new markets across the globe. Through these efforts, we aim to garner support for the 2017 Industrial Hemp Farming Act, which would ultimately remove industrial hemp from the Controlled Substances Act and end federal prohibition.